Your firm is a UK-based exporter of British bicycles. You have sold an order to an Italian firm for 1,000,000 worth of bicycles. Payment from the Italian firm (in ) is due in twelve months. Your firm wants to hedge the receivable into pounds. Not dollars. Interest rates are 3 percent in 2 percent in $ and 4 percent in . Currency per Country U.S.S equiv. U.S.$ Tuesday Monday Tuesday Monday Britain(pound)62,500 1.6000 1.6100 0.625 0.6211 1 Month Forward 1.6100 1.6300 0.6211 0.8173 3 Months Forward 1.6300 1.6600 0.6173 0.6024 6 Months Forward 1.6600 1.7200 0.6024 0.5814 12 Months Forward 1.7200 1.8000 0.58 14 0.5556 Euro 62.500 1.2000 1.2000 0.833333 0.833333 1 Month Forward 12100 12100 0.82645 0.82645 3 Months Forward 1.2300 12300 0.813008 0.813008 6 Months Forward 1 2600 12600 0.793651 0.793651 12 Months Forward 1.2900 1.32000.775194 0.757575 Detail a strategy using spot exchange rates and borrowing or lending that will hedge your exchange rate nak Select O Sell Elm forward using 16 contracts at $1 20 per 1 Buy 750,000 forward using 12 contracts at 51.60 perct O Borrow 3/0,873. 79 in one year you owe cine which will be lianced with the receivable Convert 970.873.799 dollars a spal receive st.165.040,50 Convert dolls to pounds atspaltecele 128 15534 O none of these answers Olmforwain 16 contracts at the toward at 29 e 1 Buy 750.000 forwale using 12 contracts at the toward at $132 per 1